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Hans India
09-08-2025
- Business
- Hans India
The rise of skill-based hiring: Why capabilities matter more than credentials
In a job market defined by disruption, digitalisation, and evolving business needs, the criteria for hiring are undergoing a major transformation. The long-standing emphasis on degrees and institutional pedigrees is giving way to a more practical and flexible model: skill-based hiring. No longer a niche or short-term trend, this approach is becoming central to how forward-thinking organisations attract, evaluate, and retain talent. From credentials to capabilities Traditionally, hiring processes have hinged on qualifications, college names, and years of experience. These served as proxies for ability — but they don't always reflect what a candidate can actually do. Today, that model is being disrupted. Skill-based hiring places emphasis on practical ability, problem-solving, and the capacity to learn and adapt. It focuses on whether a candidate can perform the tasks the job demands — not just whether they hold a certain degree. This allows for a more precise match between candidate and role, while also opening doors to a wider, often untapped, talent pool. The Indian context: Challenge meets opportunity India produces millions of graduates each year, yet many of them struggle to find jobs that match their qualifications. This paradox stems from a gap between academic learning and job-ready skills. Employers are increasingly finding that degrees alone don't guarantee workplace readiness. Industries such as IT, fintech, e-commerce, and digital marketing have been early adopters of skill-first hiring. Roles in these sectors demand specific, often niche skills that are not always taught in traditional academic settings. By assessing candidates based on skills — even those self-taught or acquired through bootcamps — employers are expanding their talent pipelines while improving job-role alignment. According to the World Economic Fworum's 2025 Jobs Report, around 30% of Indian employers are actively shifting to skill-based hiring models — a significant step towards aligning education, employment, and economic growth. The equity advantage: A more inclusive workforce One of the most powerful impacts of skill-based hiring is its potential to democratise opportunity. Under conventional hiring systems, candidates from less privileged educational backgrounds are often excluded — regardless of their competence. Skill-first approaches reduce the influence of socioeconomic factors, allowing individuals to be evaluated on what truly matters: what they can do. In a diverse country like India, where access to quality education is still uneven, this shift can help bridge social and economic divides. It allows individuals to rise based on merit and performance, rather than access and pedigree. Preparing for the future of work The future of work will be shaped not by static knowledge but by the ability to adapt, learn, and apply. A WEF study suggests that by 2030, almost 39% of core job skills will have changed. Technological advances — from automation to AI — are transforming roles faster than ever before. In such a climate, the shelf-life of technical skills is shrinking, and soft skills like creativity, communication, and collaboration are gaining prominence. Skill-based hiring is a proactive response to these shifts. It allows companies to remain agile, build resilient teams, and invest in people who are capable of evolving with their roles. It also empowers employees to take charge of their own development, knowing that progression is tied to what they can learn and deliver, not just how long they've been in a role. Tech-driven talent identification Technology is playing a central role in this hiring revolution. AI-powered tools, online assessments, and skills platforms are helping employers evaluate candidates with far greater accuracy. These tools can simulate real-world tasks, assess thinking patterns, and test technical and interpersonal abilities. Such innovations help reduce bias, enhance objectivity, and make the hiring process faster, fairer, and more effective. They also allow candidates to demonstrate skills in action, rather than just talking about them in interviews or on resumes. What this means for candidates For job seekers — especially students, career switchers, and those from non-traditional backgrounds — this shift is both liberating and challenging. It's no longer enough to rely on a degree; continuous learning, skills development, and real-world application are the keys to staying relevant. Here's what candidates can do: • Focus on skill acquisition: Learn through online platforms, internships, freelance projects, and real-world experience. • Build a portfolio: Showcasing work (code, writing, designs, etc.) can speak louder than resumes. • Embrace lifelong learning: Stay updated and agile by continuously reskilling and upskilling. • Demonstrate adaptability: Employers value flexibility, curiosity, and the ability to learn on the job. • Leverage digital platforms: Use professional networks, project showcases, and skill-based credentials to stand out. Moving forward Skill-based hiring is not just a strategy — it's a mindset shift. For employers, it's about building diverse, capable teams ready to tackle future challenges. For candidates, it's about taking ownership of learning and growth, knowing that their career trajectory depends not on where they come from, but what they bring to the table. As this approach gains ground, it's likely to become the foundation of a more inclusive, dynamic, and merit-driven workforce — not just in India, but around the world.
Hans India
14-07-2025
- Business
- Hans India
The rise of skill-based hiring
Ina rapidly evolving job market, the focus of hiring managers is gradually shifting from pedigree colleges and degrees to a more dynamic, inclusive, and holistic approach: skill-based hiring. More than a fleeting trend, this approach is a fundamental change that is redefining how organisations attract, assess, and retain talent. For India, with its vast and diverse workforce, this transformation carries particularly powerful implications. From credentials to capabilities The conventional hiring model has long favoured educational qualifications and years of experience. But today, when technology and business have evolved, static indicators of competence no longer suffice. Employers are now prioritising what a candidate can achieve over where they studied or how long they've worked. Skill-based hiring focuses on assessing practical abilities and potential, allowing organisations to match the right talent to the right roles. It helps close the gap between job requirements and workforce readiness by emphasising hands-on expertise, problem-solving, and adaptability; skills that are critical in modern workplaces. Several sectors, including IT, Fintech, and Financial services, have been early adopters of the skills-first approach. The digital transformation underway in these industries demands a constant influx of talent with niche technical capabilities. Hiring based on skills rather than titles has enabled firms to tap into a wider and more diverse talent pool, including self-taught coders, bootcamp graduates, and career changers. According to The World Economic Forum's (WEF) 2025 Jobs Report, around 30% of Indian employers are looking to adopt skill-based hiring practices. In a volatile business environment, this agility is a significant competitive advantage. The inclusion factor Another compelling advantage of skill-based hiring is that it significantly broadens the talent pool, offering the potential to democratise access to job opportunities. Traditional recruitment processes often exclude talented individuals who may not have had access to renowned institutions but possess the right skills for the job. By removing barriers tied to background and focusing on performance and capability, companies can build a more inclusive workforce. This shift can be particularly impactful in India, where socioeconomic disparities often influence educational pathways. Skill-based hiring creates space for upward mobility and promotes equity in hiring practices. It allows candidates to be judged by what they know and can do, not merely by their academic history. Adapting to the future of work As per a WEF report, found that, on average, workers can expect that 39% of their existing skill sets will be transformed or become outdated by 2030, making upskilling and reskilling non-negotiable. Automation, AI, and digital tools are reshaping job roles at an unprecedented pace. As these changes unfold, employers must prioritise adaptability, creativity, and continuous learning; traits that can't be measured through a degree alone. Skill-based hiring is a proactive response to these shifts. It enables companies to align talent acquisition with future business needs, build resilient teams, and stay ahead of disruption. More importantly, it empowers employees to grow in their roles through learning and development, rather than relying solely on promotions based on tenure. The role of technology Like in other aspects of the evolving workplace, technology is playing a crucial role in the transition to skill-based hiring as well. AI-powered assessment tools, skills mapping platforms, and competency-based interviews are helping recruiters identify talent more precisely. These tools can evaluate candidates on real-time problem-solving, technical acumen, and interpersonal skills, offering a more holistic view of their potential. Several startups, educational platforms, and HR tech platforms are already facilitating this transition by providing tools that allow companies to screen candidates on task-based assessments. These innovations help reduce biases, standardise evaluations, and enhance the overall quality of hires. The larger picture While a skill-based hiring approach appears ideal, it comes with its share of challenges. A transformation of this scale is not possible overnight. It requires planning and strategic alignment. Besides, it also involves cultural shifts, requiring a complete mindset and operational overhaul. Organisations must invest in redefining job descriptions, training recruiters, and overhauling evaluation processes. There is also a need to build robust reskilling and upskilling programs so employees can continuously adapt to new roles. Looking ahead With more and more employers leaning towards a skill-based hiring approach, it's likely that the next decade of work will be shaped by flexibility, innovation, and the ability to adapt quickly. Skill-based hiring offers a powerful framework to navigate this future. For employers, it presents a timely opportunity to unlock untapped talent, reduce hiring gaps, and drive business performance through capability-first strategies. So, as job roles and industries evolve, the organisations that thrive will be the ones that prioritise the true currency of the workforce – skills.
